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Terra Firma Capital Corporation Reports Results for the First Quarter Ended March 31, 2014

May 26, 2014



ENP Newswire - 26 May 2014

Release date- 23052014 - TORONTO, ONTARIO - Terra Firma Capital Corporation (TSX-V: TII), a real estate finance company, today released its financial results for the three months ended March 31, 2014.

FIRST QUARTER 2014 HIGHLIGHTS:

Total revenue in the first quarter is $2.7 million, an increase of $1.0 million or 62%, as compared to the same period in the prior year.

Net income and comprehensive income in the first quarter is $618,000, an increase of $353,000 or 133%, compared to the first quarter of 2013.

Earnings per share is $0.02 per basic and diluted share, compared to $0.01 per basic and diluted share, an increase of 100% from the same quarter in the prior year.

Total assets increased by 28% to $73.0 million from $57.1 million at March 31, 2013.

'I am pleased to report another strong quarter of growth as we begin 2014 on a solid footing' commented Y. Dov Meyer, President and Chief Executive Officer. 'Loan originations for Q1 2014 and our current pipeline eclipse our investment activity for the same period last year. As a result we anticipate continued growth in revenue and earnings through the balance of 2014. I am encouraged that subsequent to quarter end, our capital markets initiatives resulted in analyst coverage on the company', concluded Mr. Meyer.

Results of operations - three months ended March 31, 2014

Net income in the first quarter ended March 31, 2014 was $618,000 or $0.02 per basic and diluted share, compared to $265,000, or $0.01 per basic and diluted share, in the first quarter ended March 31, 2013.

Interest and fee income for the first quarter ended March 31, 2014 aggregated $2.6 million, an increase of 65% over the $1.6 million in the same period in the previous year, and slightly down from the $3.0 million in the fourth quarter ended December 31, 2013 due to timing of certain income recorded in 2013. Interest and fees in the fourth quarter ended December 31, 2013 included prepayment penalty, which resulted a $92,000 increase in fee income.

Interest expense for the first quarter ended March 31, 2014 was $1.5 million, compared to $937,000 for the comparative period last year and $1.6 million for the fourth quarter ended December 31, 2013. The Company's loan and mortgage investments increased from $55.3 million at December 31, 2013 to $56.3 million at March 31, 2014, an increase of 2%.

The total value of loan and mortgage investments originated in the first quarter ended March 31, 2014 was $9.4 million compared to $13.4 million originated in the first quarter ended March 31, 2013. The average interest rate in the mortgage portfolio at March 31, 2014 was 18.8% compared to 18.6% at December 31, 2013.

The Company's Management's Discussion & Analysis and Financial Statements as at and for the three months ended March 31, 2014 have been filed and are available on SEDAR (www.sedar.com).

About Terra Firma

Terra Firma is a full service, publicly traded real estate finance company that provides customized equity and debt solutions to the real estate industry. Our focus is to arrange and provide financing with flexible terms to property owners looking to improve or add to their existing real estate assets but who may be limited by conventional bank financing, as well as to invest in quality commercial and residential developments by proven real estate developers.

Terra Firma offers a full spectrum of real estate financing under the guidance of strict corporate governance, clarity and transparency. For further information please visit Terra Firma's website at www.tfcc.ca.

This Press Release contains forward looking statements with respect matters concerning the business, operations, strategy and financial performance of Terra Firma. These statements generally can be identified by use of forward looking word such as 'may', 'will', 'expects', 'estimates', 'anticipates', 'intends', 'believe' or 'could' or the negative thereof or similar variations. The future business, operations and performance of Terra Firma could differ materially from those expressed or implied by such statements.

Such forward looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Forward looking statements are based on a number of assumptions which may prove to be incorrect.

Additional, important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, local real estate conditions, competition, changes in government regulation, dependence on tenants' financial conditions, interest rates, the availability of equity and debt financing, environmental and tax related matters, and reliance on key personnel.

There can be no assurances that forward looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking statements. The cautionary statements qualify all forward looking statements attributable to Terra Firma and persons acting on its behalf.

Unless otherwise stated, all forward looking statements speak only as of the date of this Press Release and Terra Firma has no obligation to update such statements except as required by law.

Contact:

Y. Dov Meyer

President and Chief Executive Officer

Terra Firma Capital Corporation

Tel: 416.792.4709

Email: ydmeyer@tfcc.ca


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Source: ENP Newswire


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